BUDGET
Dr Sandeep Kaur
Commerce Department
LKC KPT
Introduction
A budget
is an
estimation
of revenue
and
expenses
for a
specified
period of
time.
Purpose of Budgeting
Enhances fiscal planning and
decision planning.
Mechanism for translating fiscal
objectives into projected monthly
spending pattern.
Clearly recognizes controllable and
uncontrollable costs areas.
Union Budget of India
As per Article 112 of the Constitution of
India, the Union Budget of a fiscal year
refers to the annual financial statement of
the Union Government for that particular
fiscal year.
It contains a detailed account of the
estimated receipts and expenditures of the
government for a particular fiscal year
that runs from 1st April to 31st March.
The data contained in the Union Budget of
India can be categorized into the following
three categories:
Budget Estimates of receipts and
expenditures for the upcoming fiscal year
(also known as the Budget Year)
Revised Estimates of receipts and
expenditures for the current fiscal year.
Provisional Actuals of receipts and
expenditures for the previous fiscal year.
Budget 2024-25
On 23rd July, 2024 our Finance Minister
Nirmala Sitharaman presented budget.
In her speech she stated:
“India’s inflation continues to be low, stable
and moving towards the 4 per cent target.
Core inflation (nonfood, non-fuel) currently is
3.1 per cent. Steps are being taken to ensure
supplies of perishable goods reach market
adequately”.
In the interim budget, Govt. focused on 4
major castes, namely ‘Garib’ (Poor),
‘Mahilayen’ (Women), ‘Yuva’ (Youth) and
‘Annadata’ (Farmer).
For Annadata, they announced higher
Minimum Support Prices a month ago for all
major crops, delivering on the promise of at
least a 50 per cent margin over costs.
Pradhan Mantri Garib Kalyan Anna Yojana
was extended for five years, benefitting more
than 80 crore people.
Productivity and elasticity in Agriculture
1.Transforming agriculture research- Our government
will undertake a comprehensive review of the
agriculture research setup to bring the focus on raising
productivity and developing climate elastic varieties.
2. Release of new varieties- New 109 high-yielding and
climate-resilient varieties of 32 field and horticulture
crops will be released for cultivation by farmers.
3. Natural Farming -In the next two years, 1 crore
farmers across the country will be initiated into natural
farming supported by certification and branding.
4. Missions for pulses and oilseeds- For achieving self-
sufficiency in pulses and oilseeds, govt. will strengthen
their production, storage and marketing.
Employment & Skilling
Employment Linked Incentive- government will
implement following 3 schemes for ‘Employment
Linked Incentive’, as part of the Prime Minister’s
package.
These will be based on enrolment in the EPFO, and
focus on recognition of first-time employees, and
support to employees and employers.
Other plans- encourage participation of women in the
workforce,
for skilling in collaboration with state governments
and Industry. 20 lakh youth will be skilled over a 5-
year period. 1,000 Industrial Training Institutes will
be upgraded in hub and spoke arrangements with
outcome orientation.
Infrastructure
1. Infrastructure investment by Central
Government and state govt.-Significant
investment the Central Government is to make
to maintain strong fiscal support for
infrastructure over the next 5 years.
2. Investment in infrastructure by private sector
will be promoted through viability gap funding
and enabling policies and regulations.
3. Pradhan Mantri Gram Sadak Yojana will be
launched to provide all-weather connectivity to
25,000 rural habitations which have become
eligible in view of their population increase
Innovation, Research & Development
Govt. will implement the Anusandhan
National Research Fund for basic research
and prototype development.
Space Economy -With continued emphasis on
expanding the space economy by 5 times in
the next 10 years, a venture capital fund of
Rs. 1,000 crore will be set up.
Budget Estimates 2024-25
For the year 2024-25, the total receipts other
than borrowings and the total expenditure
are estimated at Rs.32.07 lakh crore and Rs.
48.21 lakh crore respectively. The net tax
receipts are estimated at Rs. 25.83 lakh
crore. The fiscal deficit is estimated at 4.9 per
cent of GDP.
The gross and net market borrowings
through dated securities during 2024-25 are
estimated at Rs. 14.01 lakh crore and Rs.
11.63 lakh crore respectively.
Indirect taxes
In Budget 2022-23, govt. reduced the number
of customs duty rates.
To provide relief to cancer patients, govt.
propose to fully exempt three more medicines
from customs duties.
Govt. proposed to reduce the BCD on mobile
phone, mobile PCBA and mobile charger to
15 per cent.
Govt. proposed to reduce customs duties on
gold and silver to 6 per cent and that on
platinum to 6.4 per cent.
Direct taxes regime
Short term gains on certain financial assets shall
attract a tax rate of 20 per cent, while that on all
other financial assets and all non-financial assets
shall continue to attract the applicable tax rate.
Long term gains on all financial and non-financial
assets, on the other hand, will attract a tax rate of
12.5 per cent.
On personal income taxes, the standard deduction
for salaried employees is proposed to be increased
from ₹50,000/- to ₹75,000/-. Similarly, deduction
on family pension for pensioners is proposed to be
enhanced from ₹ 15,000/- to ₹ 25,000/-
Direct taxes regime
New tax regime
These are
the new tax
slab rates:
for
individuals.
THANKS
